A Note From Lisa Bloomfield, the 1B Independent Bookkeeper

Posted 4/5/2013

Below are links to documents referenced in the note:
2013_04 Bookkeepers Report_D1-B
Oct ’12 – Jan ’13 Inc Stmt Comp to PY

The cash position and cash reserves of Denton 1-B are at a much healthier place than they were a few months ago.

  1. The property tax collections are about 98% collected as of March 31st, so all the taxes needed to pay the bond debt payments for this year have received.
  2. Denton 1-A has revised the cost allocation worksheets for Oct & Nov ’12, and both did result in a total of $18,527 in credit we applied to December & January’s invoicing.
  3. The Operations page shows Dec, Jan & Feb 1st billings – which are the leanest months with the lowest usage.
  4. The accounting pages of the report are for the 4 months year to date, through January 31, 2013.
    1. The accounting expenses numbers from Denton 1-A are the revised numbers, based on the corrected accounting cost sharing allocation worksheets.
    2. Denton 1-A has been running the system mostly under budget, with the only real exception being the additional water expense associated with the pump house failure and resulting switch to water from Lewisville rather than Upper Trinity.
    3. The street repairs that have started in the District are for the most part not reflected in these 4 months of expense numbers. Those expenditures were budgeted at $100,000, and has mostly occurred during February & March so we’ll be seeing that in the numbers in the coming months.
    4. The transition to the new law firm has been cost effective and efficient to date, with the 6 months year to date billings at 65.9% of budgeted – $39,556.81 billed to $ 60,000 budgeted. These figures are not shown on the accounting reports.

I have also attached a report that compares the 4 months ended January 31, 2013 of this fiscal year to the same period from last year. You can decide if you want to include this unofficial report on the website.

  • This report shows the utility billing revenue increases – from the new rates that took effect for the November 1st billing.
  • Also shows the easement revenue from CoServ being received again.
  • Shows how we are still seeing some reductions from Denton 1-A in some areas 1-B has questioned in the past.
    • Direct Expenses are down in water, sewer & administration. Water usage expense is up because the Lewisville billing rate is much higher than we normally pay Upper Trinity. That water usage expense could be a budget breaker this year without insurance reimbursements.
    • Personnel & OH Expenses are down in all the main categories – water, sewer, streets, permits. The Administration P & OH is up 21.5% over last year though, for reasons yet unknown.
    • Maintenance & Operations expenses are higher for water, sewer & drainage, lower for streets & parks. The water system expenses appear in the detail I have reviewed to be tied to the pump house issue and not as much to actual additional unbudgeted regular maintenance.

Thank you,

Lisa Bloomfield
Independent District Bookkeeper- District 1B


Posted 12/21/2012

Below are some highlights from the October 2012 bookkeepers report found (which can be found here as a spreadsheet or as part of the entire board packet from the last meeting as a pdf here. The check register can be found on the tab labeled ‘Op Acct’, but is also found on check register section of this website to allow for public comments.

Comments to the report would be:

  • Not reflected anywhere on this report is the receipt of 14 months of Franchise Electric Fee Revenue from CoServ Electric. $100,533 was received and deposited on Dec 13, 2012 for all franchise fees from Oct 2011 – Nov 2012.
  • The cash position of the District is improved since September. Denton 1-B is focused on being an efficient board and effective user of its revenues and in doing so was able to skip a November 2012 meeting and eliminated costs associated with that meeting.
  • This report reflects the unaudited, but fairly complete accounting for the 12 month Fiscal Year ending September 30, 2012.
  • The District’s expenditures exceeded its revenues by about $265,000 (after accounting for the $87,000 in franchise fees for the fiscal year).
    • A 4% reduction in water revenue that is a product of water restrictions on the District over the summer.
    • This was primarily due to additional legal expenses associated with the two lawsuits the board is involved in.

 

Thank you,

Lisa Bloomfield
Independent District Bookkeeper- District 1B


Posted 11/08/2012

Below are some highlights from the October 2012 bookkeepers report found (which can be found here as a spreadsheet or as the entire pdf here).  The check register can be found on the tab labeled ‘Op Acct’, but is also found on the check register section of this website to allow for public comments.

Comments to the report would be:

  1. The bank balance is low at this time, awaiting the tax collections to start (Dec-Feb), as well as the long overdue remittance of the last 12 months of CoServ Franchise Fee Revenue that is expected to come in and be given to Denton 1B, during the next 60 days.
    1. There is some possibility that at the next meeting Denton 1B will have to delay the payment of some invoices to await the cash flow improving.
    2. Other impacts the Denton 1B bank account balances is the settlement and payment of some items due to the Developer, and placing $150,000 on deposit with Denton 1A to cover the monthly amounts to be billed for items paid by 1A under the Operating Agreement.
  2. Tax Collections are 99%, and our bond debt payments are fully covered and were all paid in their normal, timely manner – which is always a good thing.
  3. The accounting pages of this report are a mix between 12 months of activity for Revenues and expenses paid by the 1B Bookkeeper, and 10 months (through July 31) for the activity managed by Denton 1A. It is anticipated that the actual activity for the full 12 months of the fiscal year ended Sept 30, 2012 will be reviewed at the next meeting.
  4. The budget year is anticipated to result in a loss. The reasons for this are
    1. Water Revenue was down from estimated, due to water restrictions having to be implemented.
    2. Reserves budgeted by Denton 1A, and still being contested and negotiated by Denton 1B, have been recorded for the year. To date, Denton 1B has paid Denton 1A $ 64,285 of the budgeted $150,000 in Reserves to the year ending 9/30/2012.

Lisa Bloomfield
Independent District Bookkeeper- District 1B


Posted 8/31/2012

Below are some highlights from the July 2012 bookkeepers report found (which can be found here in its entirety).  The check register can be found on page 2, but is also found on the check register section of this website to allow for public comments.  Please note, the bookkeeper report found in the August Board Packet was inadvertently released with a mis-keyed entry after distribution.

  • The bank account balance is now $ 132,464. This balance reflects payments made to 1A for Facilities Operating and Maintenance expenses under the Operating Agreement, in accordance with the Settlement Agreement agreed to in July. 1B has now paid every expenditure they have been invoiced for from 1A, for the current fiscal year’s Operating costs.
  • June and July 2012 expenditures by 1-A under for Facilities Operations & Maintenance were not released to 1B by the time this report was completed, so expenditures are only recorded through May 31st, which is the same as last month’s Bookkeeper’s Report.
  • The revenue has been recorded through July 2012. A trend is forming in the water revenues that is not to 1-B’s benefit: Homeowners are pretty good at conserving water.
  • The result is Water Revenue that is below budget by an estimated 20% – or about $175,000. We are hoping this trend reverses itself a little in August and September, but given the recent rain we all remember getting the District could experience a cash crunch in the next few months.

Lisa Bloomfield
Independent District Bookkeeper- District 1B

© Denton County Fresh Water Supply District 1B